Which One of the Following Is an Example of Systematic

question 83

Multiple Choice

Which one of the following is an example of systematic risk?

• A)A poorly managed company suddenly goes out of business due to slow sales.
• B)An efficient company reduces its work force and automates several jobs.
• C)A key company employee suddenly resigns and accepts employment with a competitor.
• D)A well respected chairman of the Federal Reserve suddenly resigns.
• E)An unpopular president of a firm suddenly resigns.

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Definitions:

Grinding Machine Time

The amount of time a grinding machine is used in the manufacturing process, often a basis for allocating production costs.

Intermediate Calculations

The steps or computations performed as part of a larger problem-solving process, often leading towards final results or conclusions.

Production Facility

A location equipped with machinery and tools used in the manufacturing or production of goods.

Variable Cost

Costs that change in proportion to the level of goods or services produced by a business, such as raw materials and direct labor.